Global markets collectively rallied overnight, with European and US markets building on yesterday’s Asian rally.
Investors took comfort in German Chancellor Angela Merkel’s commitment to hold together the eurozone.
The UK’s FTSE 100 added one point to settle at 5835, whilst the CAC (+0.9%) and DAX (+0.7%) enjoyed stronger gains.
Stateside, the Dow Jones jumped 85 points (+0.7%) to settle at 13250, with the S&P (+0.7%) and NASDAQ (+1%) also ending well in the green.
A raft of US economic news delivered mixed results.
Home building slipped in July, missing expectations, but new permits rose to their highest level in four years, a possible sign of confidence for construction going forward.
The Philadelphia Federal Reserve’s index of manufacturing activity showed a bigger-than-expected contraction in August, one day after a New York reading showed a contraction for the first time this year.
The number of US workers filing applications for unemployment benefits rose last week, in line with forecasts.
Crude-oil futures rose 1.3% to finish at $95.60 a barrel, while gold futures settled up 0.8% at $1,616.10 an ounce.
The US dollar fell against the euro and gained ground against the yen. The yield on benchmark 10-year Treasurys rose to 1.836%, the highest since May, as demand fell.
In company news, APN News & Media has reported a full year net loss $319.4 million, a worse loss than the $98.3 million a year earlier.
There is no major local data due out for today’s session.